Jobs Risk Management

Risk management has always been a core aspect of the financial industry, and this is a job sector which will only grow following the global financial crisis.

Risk professionals play a crucial role in balancing profitability against over-enthusiasm by traders and others. Across market risk, credit risk and operational risk, a risk manager's job is to identify and monitor the institution's risk exposure, and to take steps to prevent unacceptable levels of risk.

Types of Risk Management

Market risk professionals work directly with traders, assessing and modelling risk in different asset classes, including derivatives such as forwards, futures, options and swaps.

Credit risk professionals deal with loan and credit procedures. Here, a risk manager prepares independent assessments about the financial standing of current and prospective borrowers. Credit risk managers must work not only to the bank's internal procedures, but also in line with local regulations.

Operational risk concerns the likelihood of the bank incurring loses due to internal factors such as wrongdoing or a systems breakdown. An operational risk manager will perform reviews of business processes, and will liaise with internal audit professionals, external audit and regulators.

Qualifications Required

An MBA is usually required for entry to a risk management career, although some institutions to take on graduates for training.

Many risk professionals undertake study specific to their profession. For example, the Global Association of Risk Professionals offers the FRM designation to those who pass two examinations and have at least two years of work experience in this field.

Prospects

The need to identify and control risk within the financial sector is becoming increasingly important. As banks face growing demands for transparency from regulators, the role of risk management professionals is likely to widen. For this reason, risk management is considered a growing job market for financial professionals.